The beneficiary receives Educational Assistance Payments (EAPs) based on the subscriber's instructions. 1 The maximum amount of EAPs that can be paid before end of the first term of full-time studies (usually a period of 13 consecutive weeks) is $5,000. 2 For part-time studies, the amount is $2,500. After that time, if the beneficiary needs to cash in all of the investment income and grants during the same year to cover tuition and expenses, the full amount can be withdrawn.
If the beneficiary does not pursue postsecondary studies and no other beneficiary is named, grants will be returned to the government and contributions will be refunded to the subscriber. The subscriber may also receive the investment income generated by the RESP in the form of Accumulated Income Payments if certain conditions are met.